Digital Commerce and the Effect of COVID-19

Digital commerce continues to grow. The COVID-19 pandemic heavily influenced how consumers shopped, driving consumers to online shopping for safety and simplicity. While pre-pandemic, consumers might only have used certain services every month or two, the need to avoid in-person purchases led to weekly or even daily use of online options. Merchant categories that experienced the highest frequency of use included meal delivery, entertainment subscriptions, and grocery shopping. For safety and simplicity, consumers have turned to online shopping in droves, and it is only natural that those same consumers seek the most seamless shopping experience possible.

Credential on File Can Accelerate Digital Commerce

What is Credential on File (or Card on File)?

Credential on File refers to a process in which a cardholder explicitly authorizes a merchant to save their payment information. Any time someone re-orders from the same online merchant and does not have to re-enter their payment information, that is because the merchant has their card or credentials on file.

Credential on file simplifies checkout and will continue to fuel digital commerce growth. When consumers use saved payment credentials, the shopping experience is faster and more convenient, making consumers more likely to shop with that merchant again in the future.

To take an in-depth look at why Credential on File is crucial for digital commerce and how it can improve the consumer experience, Mastercard partnered with Ipsos to release a recent whitepaper, “Credential on File: The Digital Commerce Growth Engine.”

Credential on File Opportunity for Card Issuers

Using a Credential on File is now widespread among consumers when they shop online, and it is more important than ever to become consumers’ default card for digital. While consumers like the convenience of saving credentials on file, to capture their interest, issuers need to understand and address their security concerns. 40% of consumers today still use guest checkout due to security concerns.¹ Issuers who give consumers transparency, convenience, and security have a stronger chance of gaining that top of wallet position.

Mastercard Token Connect API can ease consumer’s security concerns

Mastercard is offering the Token Connect API, which enables issuers to create an experience that gives consumers a convenient and secure way to push tokenized card credentials directly from the issuer environment to participating digital endpoints. Online checkouts, wearable IoT devices, digital wallets, and participating merchants can all receive tokenized credentials via Mastercard Token Connect. To enable speedy online checkouts on merchant websites, Token Connect helps consumers easily push card credentials to Click to Pay, which features multiple layers of security, easy-to-use digital interface, and interoperability with tokenization and authentication standards. Additionally, Token Connect is now integrated with Samsung Pay, allowing cardholders to push provision their eligible Mastercard into their Samsung device and conveniently pay in-app, online or in-person.

Mastercard Token Connect can drive card preference and other benefits

Token Connect enables card issuers to provide their cardholders with an easy and secure way to save their card as default to multiple destinations, increasing engagement and reinforcing their brand as a trusted source. Issuers also obtain access and ability to provision credentials into all participating digital endpoints with a single integration into Token Connect. As for cardholders, they get a convenient, secure, and digital first way to push tokenized card credentials. 77% of consumers agree that saving their payment card details makes it more convenient to make purchases or payments.² Mastercard Token Connect provides a way for issuers to drive more card on file, win the top of wallet race, and generate increased spend and revenue.

The future of e-commerce

Online purchasing is continuing to increase. Most consumers plan to continue using e-commerce as their preferred channel even after the pandemic ends. It is reasonable to expect that cardholders will continue to gravitate towards Credential on File transactions. Mastercard Token Connect offers a convenient and secure way to push tokenized credentials to participating digital endpoints to enable frictionless CX and drive loyalty.

To learn more about the current e-commerce consumer trends, what strategies issuers can deploy to become and remain the default card, and why Mastercard Token Connect offers the best solutions, consider reading Mastercard’s whitepaper.